#finance Blogchatter A2Z 2021

Financial goal to achieve in your 20’s

Valuing our time is what reaps us gains and same is true for investments too. The sooner you start the more money you make.

20’s is a stage in life when one transitions from collage to career, gets married or starts a family. This is the time when new developments are happening in life which calls for more savings. And if we start right, we will always be on the right track to attain our goals and have a safe and secured life. 

Let’s see the goals that one should strive for when in their 20’s. 

Investing: I have mentioned in my earlier blog too, that the sooner we start the more we benefit as we have time by our side. The most important thing here is the benefit of compound interest which shows more perks when one is invested for a longer term. If you feel you are still not very clear with the investment jargons and where to put your money, get yourself a financial advisor who will guide you in the right direction. Invest in a diversified portfolio so that all the eggs are not in the same basket and also evaluate the risk component of each investment type and your own risk appetite too. 

Budgeting: Post education when we start earning, it’s easy to splurge and spend the money but you need to be frugal and start inculcating the habit of budgeting as this will help you prioritize your needs and requirements and stay away from unwanted expenses. 

Emergency Fund: Emergency comes without knocking and its always better to be prepared for it. Putting money aside for emergency can help meet the unplanned and sudden expenses. Emergency fund acts as an insurance to your finances. Your goal should be to save at least 3 to 6 months of your salary as your emergency fund. It again depends on your job security, income, debt if any and if you are a single- or double-income household. You want to easily access your money in emergency so put the money where you can easily get it out from and also your principal amount is not at risk of loss. Go for more liquid options like savings account. To know and understand more about Emergency Fund read my earlier blog “Emergency Fund – we all need it but do we save for it?” 

Photo by Karolina Grabowska on

Down Payment: Once the family grows, everyone needs a bigger house. Plan for your down payment even before you plan to buy a house. As down payment makes nearly 20% of the purchase price, it’s going to be a significant amount. So start allocating money towards the down payment and come one step closer to getting your dream home. The earlier you start, the better your position will be to pay for your house and you will need lesser loan amount to back your purchase. Read my blog “All about down payment” to understand it better.

Retirement Plan: Thinking why retirement when I have just stepped into my professional life? As I said earlier, time and compound interest help your money grow better. When you start investing for your retirement at an early age, by time you retire, you will have a good corpus to support you. Also, as life proceeds, many expenses will come your way, marriage, kids, their education and lifestyle which will increase your expenses so, while you are free of these duties, you have more money to put aside and build your future. Read “Retirement – how to go about it” 

Clear your Debt/ Student Loan: Students take study loan and start paying for it as and when they start earning. If you have a student loan or a credit card debt, try to clear if off as early as you can as you start earning. Once you clear your old debts, you open up avenues for better and greater things in life like getting a new car or a plasma TV for your house. Also read “Manage your debt” to know more.

Focus on your career growth: First right step sets the tone of your future. Focus on your job and how to grow in that and succeed in life. Tap every viable opportunity and scale up. 

Being thrifty from an early age will allow you to spend on things that really matter and not go on a wild spree every time you have money in hand. 

In my next blog, I will talk about “Why and how women should get in to Investing” So stay glued to my blogs to read some more interesting articles that brew in the next few days. 

Till next time

Stay Strong and Pray for our Country

 This blog is a part of Blogchatter’s #blogchatterA2Z challenge. 

By mummatalks

Mom of two brats, use to work as an analyst now a SAHM. Love books.

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